Business Dominance among the Malays and Chinese in

International Journal of Social Science and Humanity, Vol. 3, No. 4, July 2013
Business Dominance among the Malays and Chinese in
Malaysia from a Civilizational Perspectives
Wan Norhasniah Wan Husin
Abstract—The business sector can become a profitable
venture and improve one’s economic status remarkably. In
Malaysia, the society’s participation in business, whether in
small enterprises like grocery, or large scale industries like
construction, is largely controlled by the Chinese community
than the Malays. Based on previous research, the domination by
the Chinese is due to their assumed expertise in the field, as they
are considered to possess shrewd business acumen inherited
from their ancestors. This is different from the Malays whose
economic activities were more concentrated on farming,
livestock breeding, and petty trades compared to large scale
business sectors. If there were Malays involved in big-scale
businesses, they usually involve Malays from the upper crust of
society. Therefore, the study aims to analyze the issue from a
new perspective, by focusing on the effects of civilizational value
on an ethnic’s dominance in the business sector. From the study,
it was found that both ethnics inherit contrasting civilizational
values and the differences have affected the ethnics’
achievement in the business sector. In order to achieve the
study’s objectives, the text analysis method was applied.
Index Terms—The Malay ethnic, the Chinese ethnic, business
dominance, value system, civilizational perspective.
I. INTRODUCTION
The business is a sector that could yield high returns to
anyone regardless of ethnic background. However, based on
achievement, the success rate tends to differ from one ethnic
to another. Among the factors that play a role in determining
the success rate is culture, which determines the work ethics
practiced by a community. The relation between cultural
values and dominance in the economic sector was also
proposed by Max Weber in his writing, The Protestant Ethics
and the Spirit of Capitalism in 1905. Weber’s findings had
attracted the interest of various scholars to further study the
impact of culture on business. According to him, culture does
play a huge role in influencing work ethics and hence in
determining an ethnic’s success. To study the influence of
cultural values in business, the study will focus on two major
ethnics in Malaysia – the Malays and Chinese.
The contrast in work ethics between the Malays and
Chinese from the civilizational perspective has not been
investigated by any researcher. Previous research
concentrated more on culture and business, and they were
analyzed differently, without linking the possible connection
between the two aspects. There were research that attempted
to link the possible relations between business and culture,
II. A CIVILIZATIONAL PERSPECTIVE
A study from a civilizational perspectives debates upon the
core values and basic principles entrenched within a
civilization and culture. The core values refer to the internal
values that form the conscience that controls the thoughts and
actions of man. This concept is proposed by Lòpez [4] in her
article titled The British Presence in the Malay World: a
Meeting of Civilizational Traditions, in the Jurnal SARI. She
Manuscript received February 20 2013; revised April 20, 2013.
Wan Norhasniah Wan Husin is with the National Defence University of
Malaysia, Sungai Besi Camp, 57000 Kuala Lumpur, Malaysia (e-mail:
hasniah@upnm. edu.my, [email protected]).
DOI: 10.7763/IJSSH.2013.V3.262
but did not present the effects of culture towards the conduct
and action of a community, and the possibility of its impact
on their success in controlling and managing businesses,
education and application on relevant fields. It will bring you
new like-minded researchers, fresh idea. It also provides a
friendly platform for academic and application professionals
from crossing fields to communication together. There are
also researches that present the ethics of business and culture,
or the impact of culture on business, but they do not study the
impact of culture on business dominance by a community or
ethnic. A study carried out by Md. Zabid Abdul Rashid and
Jo Ann [1] Ho which was reported in ‘Perceptions of
Business Ethics in A Multicultural Community : The Case of
Malaysia’, analyzed the perspectives of the Malays, Chinese
and Indians towards business ethics in Malaysia. They
examined the similarities and differences between the three
communities in conducting business dealings. However, no
focus was given on the possible impact of culture on an
ethnic’s business practices. In Muhamad bin Ahmad’s [2]
thesis, ‘The Influence of Culture on Malay Muslim Business
Practice: A Case Study of Malaysia With Special Reference
to the State of Kelantan Dar al-Naim’, the Hindu-Islam,
Malay-Islam culture in influencing the Malay community’s
practices when partaking in business at the Khadijah Market,
Kelantan was debated on. However, the discussion did not
centre on whether the cultural pattern affected the Malay
community of the past, or those residing in other territories.
The possibility of the Malays’ ability or disability in
dominating the field due to the influence of culture was also
not examined. In the meantime, in Budaya dan
Keusahawanan Cina di Malaysia, Chin Yee Wah [3]
investigated the influence of the Chinese culture on business,
but did not analyze the way the ethnic interact with other
communities.
Therefore, it has been determined that the contrast between
the work ethics embraced by the Chinese and Malay
communities from the perspective of civilization have yet
been explored by any scholar. The text analysis method was
applied while researching for materials to fulfill the
objectives of the study.
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International Journal of Social Science and Humanity, Vol. 3, No. 4, July 2013
refers to the value as the internalized filters and the action
reflected is classified as below-level consciousness. It is the
result of interaction reflected from the social norms and
physical environment of a community, on whether the
background is peaceful or chaotic caused by natural
calamities or a ruler’s cruelty. The core values are abstract in
nature, and will only come to the fore when the ethnic interact
with their surroundings. The basic principles, meanwhile,
refer to the elements of religion, traditions, language,
economy, politics, social, and arts that are the influential
components that form the basic blocks of civilization and
culture. The fundamental principles of a community are the
elements that allow its people to interact with other ethnics,
for they contain similar elements that could be shared. When
the core values and basic principles combine, the identity and
image of a community will be revealed. It is the core values
that influence the actions of a community, and what set them
apart from other ethnics. It is also through these values that
prompt some ethnics to protect the basic principles that are
considered their rightful heritage, in the form of language,
religion, traditions, and economic dominance from being
jeopardized, either through violence, or negotiations [11].
The manifestation of the core value is propositioned by
Melko [5] who highlights the differences in the American
society, as reflected in a game of volleyball between the
Anglo-Saxon and Korean communities. For instance, the
Anglo Saxons were more focused on the ability to win, so in
order to defeat the other party, they created two teams; while
the Koreans formed a circle, where they evaluated a player’s
wisdom in ‘manipulating’ his friends. This reveals that the
stress upon certain basic principles differs between
communities, for it all depends on one’s needs and
orientation.
In contrast, the Malays place emphasis on the values of
religion, politics, language, and customs that shape the core
principles of their civilization [6]. Meanwhile, the Chinese
are resolute in safeguarding their language, education,
culture and economy, which they would not hesitate to
proffer their unyielding support to any party that could aid
them in protecting the values. The Chinese ethnocentric
nature was born out of their allegiance towards their heritage
in the form of language, culture and family values which was
prevalent in mainland China [6]. For the purpose of this study,
research will focus on the economic principles, by analyzing
the work ethics observed by the Malay and Chinese
businessmen in managing and expanding their companies.
Thus, to meet the objectives of the study, civilizational
perspectives will focus on the aspect of culture and its
influence on the work ethics of both ethnics. It includes the
role of the value system, influence of traditions inherited
from the forefathers, whether from the context of political or
economic relations involving individuals from different or
similar social classes, and the role of family ties and the
society of an ethnic.
A. The Malay’s Culture
From the aspect of culture, the Malays are a people borne
out of traditions, and stress upon the importance of Islam in
their life. From previous research, it was determined that the
Malays’ value system, traditions and work ethics are based
on the core values of budi-Islam, which led to the birth of a
people that are tolerant, cooperative and respectful of others.
The suitability of the Malays’ budi core values and Islam had
founded the ground for the Malays’ customs and traditions to
be shaped according to the values of Islam [7]. Islam’s
integral aspects influenced the Malays’ core values, as the
principles are similar in nature – to guarantee peace in society
and protect the devotees from any form of harm. As a result,
it effortlessly led the Malays to embrace Islam in droves, as
the conscience, thoughts, actions and traditions observed by
the community are intertwined with that of Islam [4].
The incorporation of the values was further reinforced by
the Malay Peninsula’s strategic location, which was
bestowed from any peril of natural disasters, or even threats
from the Malay rulers presiding over the sacred, rich land.
The surroundings had directly influenced the community’s
complacent attitude, as they preferred to enjoy pursuing
leisure than use their ample time on hard labour [8]. Even if
the attitude was viewed negatively by some quarters, a study
showed that the community’s laissez-faire and cautious
nature gave them the upper hand to execute any given task
perfectly, and even govern their territory effectively.
Therefore, it is not surprising that the values are fused into
the mannerisms and actions adopted by the Malays when
performing business transactions. The values, without any
doubt, are prevalent in guiding them in executing their job
functions and in managing their business deals [1].
From the aspect of culture, in the olden days, business
ownership among the Malays was then based on one’s social
status. The domain of trading and agricultural was reserved
exclusively for the aristocrats, as it was crucial to ensure that
the clout to rule remained in their clutch. The trade sector was
in the hands of the upper crust of society since the era of the
Srivijaya Empire and continued in the succeeding kingdoms
in the Malay Peninsula and Sumatra [9]. The peasants were
mainly unencumbered from getting involved in the business
or trade sector, as their major breadwinning occupation was
to either till the land as farmers or cast their skills as
fishermen. In fact, the Malays were not inspired to
accumulate riches as they were bequeathed with an
environment that was peaceful and aplenty with provisions,
that they saw no dire need for wealth. The situation continues
to the present day, as the only scenario that has changed is
that the political domain of the country is now no longer
based on the feudal political system, but is under the
governance of the Constitutional Monarchy and Democratic
Parliament. Thus, the economic and political controls of the
nation are no longer under the jurisdiction of the Kings, but
have shifted into the hands of the Malays, without any
discrimination on their social class or standing in society.
Even though the trade sector involves the participation of
people from all walks of life, but it is an undeniable fact that
the authority remains in the powers-that-be. However, the
major concern among scholars is why the staying power of
the Malay businessmen is not as resilient as the Chinese
traders.
B. The Chinese Culture
The Chinese’s way of thinking is ideally based on their
reverence towards their elders, known as filial piety, as
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observed by Moore [10]. The notion is replicated into all
aspects of their life, which cause them to place importance on
loyalty towards the family, hence the stress upon kinship [10].
Their ethnocentric nature was borne out of the various
hardships that they had to endure, as many natural calamities
befell them, apart from the many clashes between clans or
tribes due to differences of dialect and region, and the
atrocity of the Emperors. The deplorable state of affairs was
widespread in the South of China region, which prompted
many of its residents to migrate from mainland China to flee
the ill-fated living conditions [11]. Thus, their conduct was
the result of a socialization process that stressed upon filial
piety, and as it thrived in the society’s relations, it resulted in
ethnocentricity. Meanwhile, being involved in business
activities is a norm for the Chinese, as it is an esteemed
tradition common in mainland China. It is their main source
of income, especially since the majority of the immigrants
were traders (Huashang) [12].
When conducting business, the Chinese’s work ethics are
tightly bound to value systems that stress on discipline,
family ties, and the ‘Chinese-links’. As business is their
tradition inherited from their forefathers, they hardly face any
obstacle to excel in the field. Their tireless efforts, discipline,
diligence, filial piety and ethnocentrism had allowed the
business sector to flourish among the community. For the
Chinese, one’s religious beliefs, be it Buddhism, Confucius,
Christian or Islam are not of extreme importance, as religion
is not the main orientation for the Chinese community’s
spiritual fulfillment [12].
Hence, business, for the Chinese community, is not
affiliated to any faith. Thus the question on everyone’s mind
is, what are the factors that contribute to the success enjoyed
by the Chinese in the business sector? Does the Chinese’s
business acumen stem from the value systems and business
principles inherited from their forefathers?
III. BUSINESS PARTICIPATION AMONG THE MALAYS AND
CHINESE IN MALAYSIA
Malaysia is a multi-racial country made up by various
ethnic communities. The plural society is primarily made up
of the Malays, the natives of the land that form the majority
of the population, the ethnic Chinese, the second largest
ethnic group, who are originally immigrants that hail from
mainland China. The swift rise in their population occurred
during the British occupation, starting in 1875, as they were
needed to fill up the vacuum for jobs direly required in the
mining, agriculture, and business sectors. When performing
daily interactions, the Malays and Chinese inherit their own
identities and uphold their cultural attributes like their rituals,
family ties, work ethics, value systems and religion. As a
result of the contrast from cultural traditions and civilizations,
it was observed that the community’s actions and work ethics
in executing their daily activities also differed [13].
In the Malays’ hierarchy system, since the Melaka empire
era, the business sector was controlled by the elite class,
while the commoners were involved in petty trades, farming
and fishing. Under the Malay feudal political system, the
trade sector was primarily dominated by the Malay
aristocrats, like the Sultan, palace chieftains and the affluent
362
merchants [9].
In the system, the Malay elites’ domination in business
continued until the New Economic Policy was introduced in
1970, with a transition in economic clout, to the hands of
royalty, politicians and their business partners. The Malay
commoners’ participation in the sector was not significant as
business was not considered as a major source of income for
them. The stance was further accentuated with the Malays’
culture of modesty, that they do not place substantial
importance on the accumulation of wealth, thus they are not
enthusiastic to pursue success in business, and are easily
contented with what they have [9].
The situation continues until the post-independence period
with an estimated minimal 2.4% of Malays involved in
business enterprises compared to the Chinese’s
overwhelming 97.6% participation at the end of 1970 [13].
To improve the Malays’ economic standing, the government
launched the New Economic Policy (NEP) in 1970 after the
racial riot that erupted between the Malays and Chinese on 13
May 1969. Even though the aim of the NEP’s
implementation was to increase the Malays’ business equity
in the nation to 30% by the year of 1990, but in reality, the
target was not fully achieved. According to a Malay
Non-Government Organization (NGO) Peneraju Agenda
Bumiputera (TERAJU), the Malays’ economic stake in 2008
was only 21.9%, and that the Malay traders were only
concentrated on small enterprises that had minor impact on
the nation’s Gross Domestic Product (GDP) like construction,
as 65% of the businesses yielded annual returns lower than
RM 250 000.00 [14]. Even if the government had established
various agencies to assist the Malays in business like Majlis
Amanah Rakyat (MARA-1966), where they could procure
funds, entrepreneurial training, business premises, and higher
education opportunities, but the achievement is still far from
exemplary. Thus, even though there are a number of Malay
individuals who have succeeded immensely in the business
world, but the achievement is not as great as the Chinese’s
feats, mainly due to the work ethics and perception towards
business observed by the community.
For the Chinese immigrants, the major influence in the
business connection among them is their devotion towards
the values of filial piety. Their dedication ensures that the
trust and camaraderie were instilled among them, hence all
techniques and deals were secured by them, and do not fall
into the hands of others. Their loyalty towards family also
guaranteed that businesses that can no longer be managed by
the father or elders will be continued by a filial son. In one
such case in Hong Kong, a father had called his son home
from abroad to continue running the family business. The
son’s loyalty and devotion to the family ensured his return,
and in the process, closed down his clinic in Los Angeles to
perform his due obligations as a faithful son [8].
It is this kind of connection that allows a Chinese family to
expand their business interests to various nooks and corners
in Southeast Asia. They would appoint members of the
family like a son or daughter to head operations in a number
of locations across the region, such as in Manila, Malaysia,
Singapore, Hong Kong or Bangkok. In a larger-scale network,
a ‘bamboo network’ will then rely on their connection with
other Chinese in different territories. Even if there was the
International Journal of Social Science and Humanity, Vol. 3, No. 4, July 2013
possibility of encountering contrasting political ideologies or
dialects, but still, shared traditional similarities between them
ensure that they would work out the differences in order to
accomplish success [15] The tie is further reinforced with the
establishment of the Chinese Guilds and other Chinese Halls
or Associations [16], the so-called ‘guardians and
custodians’ of the Chinese community’s interests.
The culture was preserved and reinforced when the
Chinese community spread their wings in new territories like
Malaysia, but prospered in a new facet. In mainland China,
they were mainly linked through blood relations, but in
newly-explored regions, their pragmatism changed to the
flourishing of the sense of kinship. If an individual hails from
a different clan or background, camaraderie among them is
then formed through the elements of trust, hard work and
prudence [11].
The emergence of the Chinese ethnic presence in the
Malay Peninsula started during the British occupation in
order to fill the employment void needed in the farming and
mining sectors. With their long-held traditions, each Chinese
faction separated by dialect and place of origin began to
explore Malaya’s economic sector whether in agriculture,
farming, fisheries or mining]. Business domination became
more prominent with the support from the Chinese kinship,
which came in the form of capital funding from early Chinese
settlers who had resided in the region since 3 A.D., like the
Straits Chinese and Peranakan Chinese. They explored
prospects in the business, industry, and other economic
sectors which then led to the Chinese ethnic’s dominance in
Malaya. By the 19th Century, the tin mining industry
developed further when the British introduced new
techniques, spurred by the urgency to accommodate Europe’s
industrial needs. Once British consolidated its command over
the Federated Malay States, the tin mining industry’s control
changed into the hands of the Chinese traders, and European
capitalists. Meanwhile, from the aspect of land ownership for
rubber plantation, once the British revoked the traditional
system into British law, land entitlement among the Chinese
swelled abruptly [9].
By inheriting the business shrewdness from their ancestors,
coupled with support provided by the British and Malay
leaders, the Chinese traders succeeded in gaining a
stronghold on the nation’s economic sector. This is
showcased through the mushrooming of various corporations
and enterprises, such as the Federal Flour spearheaded by
Robert Kuok and the Tan Chong Motors owned by the Tan
family [16]. The wealth and power accorded to the Chinese,
however, remained within the Chinese circle, and no Chinese
entity or even MCA members are willing to assist
non-Chinese individuals to attain the same success as them.
The Chinese business prowess continues to flourish until the
present day, and at the expense of the indigenous Malays, has
supplanted them into the wealthiest community in Malaysia.
The ability of the Chinese to sustain their business due to the
strong networking among themselves and the practicing of
‘Guangxi’ (forming personal relationship) facilitates the
business in term of opportunities and cost of doing business
since it is based on trust rather than contract. The purpose of
‘Guangxi’ is to nurture relationship to create harmony as
preached in the teaching of Confucius. Currently, the Malays
not only are lacking in term of skill and late comer in this
field, but they also do not have a cohesive group to help each
other and their linkage to parties outside the country is in
significant as compared to Chinese bamboo networks that
have linkages with fellow ethnic throughout ASEAN
Countries, Hong Kong and Taiwan. This disparity in the
ability between these two ethnics groups in a way justifies the
effort by the government to provide incentives to the Malay
business community to enhance their activities prowess in
business.
ACKNOWLEDGEMENT
We wish to offer our gratitude for the opportunity
extended by Yapiem to present the paper at this conference.
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IV. CONCLUSION
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The study shows that there is a strong link between the
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International Journal of Social Science and Humanity, Vol. 3, No. 4, July 2013
Communities in Malaysia from Civilizational Perspectives: Language and
Education Experiences. All the above papers were published by International
Journal of Humanities and Social Sciences. So far she has authored two
books, which are ‘Peradaban dan Perkauman di Malaysia; Hubungan etnik
Melayu-Cina’ (Civilization and Communalism in Malaysian: Ethnic
Relations of The Malays and Chinese), and ‘Hukuman Bunuh ke atas
Pengedar Dadah berdasarkan Siyasah Syari’yyah’ (Death Penalty to Drug
Traffickers According to Siyasah Syariyyah). Both were published by
University of Malaya publication. Dr Wan Norhasniah Wan Husin also
involves in professional activities. She is a member of Scientific and
Technical Committee & Editorial Review Board on Human and Social
Science (International). She also a National Committee member for course of
Islamic and Asian Civilization, and she has been the member of Social
Science Association of Malaysian since 2009.
Wan Norhasniah Wan Husin was born in Besut
Terengganu, Malaysia on 22 February 1972. She
obtained her Bachelor Degree in Islamic studies
from International Islamic University in 1996, and
her Master Degree in Islamic politics in University
of Malaya, Malaysia in 2002. Then she continued
her study at PhD level in ethnic politics at
University of Malaya and graduated in 2010.
Currently she is an associate professor at National
Defence University of Malaysia. Her major research areas are ethnic
politics, Islamic criminal laws, and civilization and culture.
She has authored a number of papers published in international as well as
local journals. Among the papers published in 2011 are ‘Budi-Islam: It’s
Role in The Construction of Malay Identity in Malaysia, Nation-Building
and 1Malaysia Concept: Ethnic Relations Challenges in The Educational
Fields and An Analysis of Ethnic Relations between the Malay and Chinese
364